RBI Ex-Governor Challenges Population Growth for Central Funding
Former RBI Governor D Subbarao argues against using population growth to rectify disparities in Central funds. While some political leaders advocate for increasing the population, Subbarao stresses India's aggregate population issues. He also criticizes the competitive provision of economic freebies by political parties.
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- Country:
- India
Former Reserve Bank of India Governor D Subbarao has dismissed notions that population growth might mitigate disparities in Central fund allocations. Amidst some southern states advocating for increased numbers to gain fiscal advantages, Subbarao maintains that the solution lies elsewhere.
Presenting the 3rd BPR Vithal Memorial Lecture on India's fiscal federalism, Subbarao criticized the shift in political strategy. The BJP, once critical of distributing 'revadis' or freebies, now competes fiercely with the Aam Aadmi Party in Delhi's electoral campaigns, he noted.
Subbarao emphasized that assisting struggling citizens remains a crucial government role. However, he questioned the efficacy of certain welfare measures, like offering free bus rides to women, without empirical backing of their benefits. He advocated for sustained cooperation between Central and state governments for India's development.
(With inputs from agencies.)
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